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SBF
@SBF_FTX
Replying to
@SBF_FTX
8) Which gets to another important point. The first thing that crypto had to do here was make sure that Washington was aware there was a provision in the bill that needed clarification. That was successful! Washington is well aware now.
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SBF
@SBF_FTX
9) But there are competing interests on the bill, and the multiple different amendments flying around are confusing. Republican senators have a clear line: they want to slow down and edit the bill anyway; and the majority of their members would be happy with Wyden/Lummis/etc.
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SBF
@SBF_FTX
10) Majority leadership is more likely caught between a rock and a hard place here. There are competing factions (Wyden / Yellen), and it's a small piece of a large bill. Their goal is to get the bill passed and move on with business, and not have to deal with this battle.
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SBF
@SBF_FTX
11) And so more and louder voices saying the bill's crypto provision is bad might not be what's important right now. The more difficult this is, and the more contentious, the more leadership is incentivized to say "fuck it, no amendments, we have to move on".
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SBF
@SBF_FTX
12) What's really needed here is clear, reasonable, fair compromise that can create a compelling way forward. I'm not sure what that is! But if it were *me* drafting the bill, I guess I'd try to take a step back and try a new approach.
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SBF
@SBF_FTX
13) Maybe try something like this? ---- a) To clarify, the original language means that centralized US-servicing crypto exchanges, for instance Coinbase, Kraken, FTX US, Gemini, Binance US, etc. will be treated as a broker for 1099 purposes
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SBF
@SBF_FTX
14) b) To further clarify, neither the original bill text nor this amendment are taking a position either way on any tax related duties of people or companies primarily involved in blockchain validation, noncustodial wallets, or other areas of decentralized crypto finance.
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SBF
@SBF_FTX
15) The goal here: (i) make it clear that centralized US person facing crypto exchanges have to be filing 1099s, which makes sense (ii) kick the can down the road on messier questions
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SBF
@SBF_FTX
16) Kicking the can down the road isn't ideal. But it's better than having to hash out consensus protocols, noncustodial wallets, developers, and other things at the last minute. And at least it's clear what the bill would/wouldn't do, rather than leaving it vague.
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SBF
@SBF_FTX
17) Now, probably this has already been floated, and rejected for various reasons. Probably
@SenSchumer
has already tried clarifying that the bill applies to exchanges and punting on DeFi/etc. until a future bill, and that didn't get everyone on board.
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Kicker
@KickerBTC
Replying to
@SBF_FTX
Absolutely not. Washington doesn't understand "compromises". To them a compromise is an inch closer to a mile. Never compromise.
Kim
@PelicansBTC
Replying to
@SBF_FTX
The main problem is they haven’t earned our trust. They don’t have a proven track record with “sticking to their word.” And… maybe just maybe get the wording right the first time knowing that there likely wouldn’t be time for amendments. Aka don’t rush this to begin with.
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Kim
@PelicansBTC
Replying to
@PelicansBTC
and
@SBF_FTX
It’s hard to earn trust when you attach this to a bill that has nothing to do with crypto that you know will pass… out of nowhere.. and rushed without even fully understanding the technology.
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